ECB chief economist, Philip Lane, speaks to Expansión
- Effect of lockdown on the economy is less than it was last year
- We think a lot of the pandemic shock will be offset by the end of the year
- What we are seeing now is not a significant, persistent change in inflation path
- Excessive tightening in yields is inconsistent in fighting shock to inflation path
- We will be continuing to keep an eye on things day by day
- There is no risk of overheating the economy with stimulus
- The recovery will be faster if fiscal policy makes its contribution
- Lowering rates further is still a credible option, all tools are still available
- Full interview
Just take note that this interview was conducted on 22 February i.e. start of the week, so that predates the movement in the market that we saw yesterday and most of this week.
Hence, there isn't much else besides a couple of token remarks on inflation and the economy, though policymakers everywhere will be taking notice of yesterday's action.
